Bank Of America Is A Leading Economic Indicator
Bank of America, one of the many "too big to fail" corporations, received $45 billion in taxpayer "bailout" money a while back if you recall.
Today, Bank Of America reported a $2.24 billion loss for the third quarter. But according to the New York Times, "Some of the red on the bank’s balance sheets actually reflected an improvement in its financial condition after the depths of last year."
The Bank Of America's loss represents a 26 cent decline per stock share from July through September.However, Wall Street "analysts" expected only a 12 cent per share decline. In other words, the "analysts" were off by over 100%. in their forecast.
I don't mean to upset anyone that has watched 40% to 50% of their their investment portfolio and retirement nest egg evaporate into thin air over the past two years, but I've just got to tell you this: the Wall Street "analysts", that were off the mark by over 100% in their analysis of the Bank Of America's third quarter earnings are joined at the hip with the "analysts" that you have entrusted with your investment portfolios throughout the years. And no matter how much you've lost, you can rest assured that those that manage your investment and retirement funds continue to make a profit while you continue to experience a loss.
I don't know what to make of America's current economic crisis. And it is a crisis! At last count, sixteen states are in the throes of double-digit unemployment rates. And a number of other states are running a close second in the high 9% range. Foreclosures, bankruptcies, and credit defaults are at record highs.
I think that Wall Street has sold the American people a bill of goods for way too long. My only hope is that the American people wake up before it's too late and realize that Wall Street together with the American banking industry, is a government sanctioned scam of major proportions.
Bank of America reported a third-quarter loss on Friday, releasing results that showed a bank burdened by credit card delinquencies and mortgage defaults.
The bank, which had big profits in the previous two quarters, reported a loss of $1 billion in the third quarter before accounting for dividends to preferred shareholders, in particular the federal government. When those dividend payments are included, the loss was $2.24 billion.
Some of the red on the bank’s balance sheets actually reflected an improvement in its financial condition after the depths of last year.
In a conference call to discuss the bank’s performance, its chief executive, Kenneth D. Lewis, struck an elegiac note. Mr. Lewis, under fire for the bank’s performance is stepping down at the end of the year.
Mr. Lewis said. “It’s been a pleasure to lead Bank of America and interact with all of you. I have no doubt that Bank of America will thrive and my absence will not slow the momentum that is starting once again to move forward.”
The loss of 26 cents a share for the three months from July through September compared with a profit of $3.2 billion, or 33 cents, in the second quarter. Wall Street analysts had been expecting a loss of 12 cents a share.
Loans at least 30 days overdue are still growing, the bank said in a federal filing earlier this week.
Bank of America has accepted some $45 billion in taxpayer bailouts since the financial crisis erupted last year.
Most Recommended Comment
New Port Richey, Florida, United States